SIFMA, as part of a coalition of 15 companies and organizations, provides comments to the California State Assembly supporting legislation (AB 1423) that would conform California tax provisions to the Regulated Investment Company (RIC) Modernization Act (P.L. 111-325) , which passed Congress in December of 2010.  The groups express that without conformity to the federal rules this year, California RICs and their California shareholder-investors would be subject to materially different federal and California tax rules governing the same investment.  In addition, the groups note the burdens of nonconformity would fall not only on RICs, but also on their investors and the Franchise Tax Board. Without conformity, RICs would also suffer major financial and operational burdens.